Consumer Financial Protection Act of 2010 Law and Legal Definition

Consumer Financial Protection Act of 2010 (“Act”) is a U.S. federal legislation enacted to overhaul regulations in the financial sector. This Act was signed into law by President Barack Obama on July 21, 2010. This Act is officially known as ‘The Dodd–Frank Wall Street Reform and Consumer Protection Act.’ It is commonly known as the Dodd–Frank Wall Act.

The Act established a new Consumer Financial Protection Agency to: regulate products such as home mortgages, car loans and credit cards; give the Treasury Department new authority to place non-bank financial firms such as insurance companies into receivership; and to regulate the over-the-counter derivatives market.

Some important purposes of the Act are:

a. Promote the financial stability of the U.S. by improving accountability and transparency in the financial system.

b. Protect the U.S. taxpayer by ending bailouts.

c. Protect consumers from abusive financial services practices

The Act addresses three types of federal – state law conflicts: conflicts between the CFPA and state laws, regulations, orders or interpretations (CFPA Conflicts); conflicts between the Enumerated Consumer Laws and any state laws (Enumerated Consumer Law Conflicts); and conflicts between state consumer financial laws and laws applicable to national banks and federal savings associations (Charter Conflicts)